Automating Global Mass Payments

Automating Global Mass Payments

Global mass payments to suppliers and partners are a fundamental requirement for expanding businesses. In particular, those with ecommerce or multi-sided platforms such as online marketplaces and adtech, are becoming more reliant on the products and services of overseas partners. For any organization that works with suppliers and partners all over the globe, they already know how complex the global mass payment process can be. There are regulatory issues to contend with, bank routing intricacies, currency conversion details, and often involve either highly costly and manual wire transfers or inefficient, high risk paper checks.

Solving the global mass payment problem efficiently and without affecting your organization’s profitability is critical to being able to further scale the business.

The problem is clear: there is no unifying way to send money from one bank to another bank account overseas. Global mass payments involve extensive communication with payees to collect their account information and an understanding of the syntax and data entry requirements for every country the organization is paying into. We estimate there are over 26,000 rules for global remittance and another 4,000 tax rules. On top of all this, there are fraud considerations and adherence to anti-money-laundering laws established by the federal government. Now multiply the process by a hundred or even a thousand times and it’s clear that most companies either don’t bother or must staff up to meet the challenge.

How to Make Global Mass Payments to Suppliers

To keep the AP staff within a reasonable footprint yet still adhere to best practices, recommend the following:

  • Provide a guilded self-service portal for payees to choose their preferred payment methods and provide their correct banking information
  • Offer additional payment methods: ACH, wire transfers, paper checks, global / international ACH, Paypal, etc.
  • Automate currency conversion and balance management of multiple currency types
  • Screen transactions and payees against blacklists (e.g. OFAC) for anti-money-laundering (AML) compliance
  • Collect tax indentity data from payees
  • Maintain a single instance across international subsidiaries to manage rules and maintain visibility.